Posted 1.27.15 @ 15:35
With spring still a few weeks away and the winter chill still crunching down on us every morning, it seems that Toronto’s luxury real estate market have no plans of slowing down soon. As we’ve blogged since the onset of winter last year, more and more home buyers are into house hunting come high snow and low temperatures and we can’t blame them. Below is why.
Earlier this month, the Toronto Real Estate Board reported that Greater Toronto Area’s resale market rose 9.6% in December 2014 as compared to December 2013. Just like we shared on previous real estate blog update regarding GTA’s housing market reaching a record high, the average price rose 7% in the same period.
A Listing Shortage?
Jason Mercer, TREB’s director of market analysis says that the reason for the significant price growth especially in the later part of 2014 as compared to 2013 is the shortage of listings, thereby making buyers pay more for what is available. If you’re interested with the numbers, TREB’s report says that sales rose 6.7% and the average price of homes hiked up by about 8.4%.
The Luxury Home Fever
As for GTA, it is the high-end homes which really had an impressive increase. In fact, GTA had the greatest luxury home gain by Sotheby’s International Realty Canada’s reports. The report also says that the sale of homes costing a million dollars or more in the GTA rose a whopping 38% in 2014 as compared to 2013, a trend which is expected to continue for this year and which we are currently experiencing now.
With the majority of the demand coming from foreign buyers, homes in the $1 million to $2 million range are reportedly the most sought after. The figures have changed the real estate scene so much that it is no longer considered to be a matter of luxury to pay more than a million dollars for a single family home in Toronto.
With listing below $2 million becoming scarcer and scarcer and interest rates being comparatively low to buying homes elsewhere, buyers are taking advantage of the current situation to purchase homes in the $2 million to $4 million range. This is backed up by the 40% increase in sales for that price bracket in Toronto’s market. Condos in the $1 million to $2 million increased 53% in 2014 as compared to 2013 too.
Sotheby’s International Realty Canada reported that sales for Canada’s poshest neighbourhoods averaged at more than $2.1 million starting November 2014. The luxury real estate market does seem to be getting hotter as the temperature is getting lower.
The Other Picture of the Market
As for the sale of more modestly-priced homes in the GTA, Toronto real estate agent Shawn Lackie says that they are actually slow, a situation which may be caused by fewer listings in that segment. When fuel prices are going up, it seemed that location did play a big role and people are found that it wiser to spend on a much more expensive home which is in a prime area than spend less in a home which is located in a not-so-convenient place. Petrol prices are actually low these days and that could be a reason why more homeowners are holding on to their modestly priced homes and hence, the seeming paralysis in the non-luxury home segment of the market. This can change though when the extension of highway 407 opens in the later part of 2015 but that is only a guess by some real estate agents.
Want to invest in some of GTA’s luxury real estate? Try Oakville! Oakville have plenty of elegant luxury homes in its various neighbourhoods. Want to have a waterfront home, a sophisticated condo, or a country estate? We got it all. Don’t hesitate to contact us to know more or to request a viewing.